Taxation, the National Debt, and the Projected Federal Budget Surplus

By David R. Shock

All of the anticipated proceeds from the federal budget surplus should be applied towards eliminating the national debt. I oppose efforts by Republicans and Democrats to use the money to increase the size of government.

In the current era of low unemployment and overall prosperity, we lose sight of the national debt. The national debt is a monster that will stalk future generations, especially members of so-called "Generation X." The economy moves in cycles and the current prosperity today could easily give way to recession in several years. It is therefore imperative that the federal budget surplus be used in fiscally responsible ways to reduce future taxes and to reduce the future debt load on upcoming generations of young Americans.

Current proposals by presidential candidates of the Democratic and Republican parties include such things "saving Social Security," "cutting taxes," and "reducing the national debt." I believe that we need to spend all of the projected budget surplus on reducing the national debt. The surplus may be a temporary phenomenon. It is difficult to project into the future with any certainty. Now is the time to use the surplus to free future generations from trillions of dollars of debt accumulated during the 1980s and 1990s.

Cutting Taxes

As a Libertarian, I believe in low taxes. I support ending the federal income tax as soon as it is feasibly possible. However, I strongly believe that before any significant tax cuts are made, the national debt must be eliminated for the sake of future generations of Americans. Eliminately the national debt is the moral and fiscally-responsibility way to use the current federal budget surpluses. The national debt and the costs associated with debt maintenance will be paid by a generation in the future that enjoyed none of the tax cuts of the 1980s. Taxes can and must be cut once the national debt is brought under control. We must not pass up the opportunity that we currently have to significantly reduce the national debt. Roughly 15 percent of the federal budget goes to debt service. If the debt were to be eliminated, this 15 percent could immediately be used for tax relief without cutting any spending. If elected, I would fight hard to ensure that the federal budget surpluses are used to eliminate the national debt.